Back
 TI  Vol.4 No.1 B , February 2013
A Localization of Solow Growth Model with Labor Growth Pattern in China
Abstract: This paper investigates the Solow Growth Model on a country-specific level by applying the demographic growth pat-tern in China to it. To localize the neoclassic model, China population growth estimation function based on the Verhulst Population Model is introduced to transform the population growth rate from a constant to a function, altering the orig-inal model assumption. By inserting the population growth function into Solow's work, an economy growth phase dia-gram for China is obtained. MATLAB programming is used to depict the diagram in a three-dimensional space and to show that the set of optimal capital-labor ratio values lies in the intersecting line of two planes rather than in the inter-secting point of two curves in the original model setting. An neoclassical aggregate feasible growth path for China's economy can be depicted based on a chosen optimal value. The dynamic equilibrium in this case should not be unique; instead, capital-labor ratio together with population growth situation at a certain time point should be jointly taken into consideration to solve the optimization problem in the country's long term economy development.  
Cite this paper: W. Wanxin and G. Zequn, "A Localization of Solow Growth Model with Labor Growth Pattern in China," Technology and Investment, Vol. 4 No. 1, 2013, pp. 24-26. doi: 10.4236/ti.2013.41B005.
References

[1]   R.M. Solow, "A Contribution to The Theory of Economic Growth," The Quarterly Journal of Economics, Vol. 70, No. 1, 1956, pp. 65-94. doi:10.2307/1884513

[2]   E. Accinelli and J. G. Brida, "Population Growth and the Solow-Swan Model", International Journal of Ecologi-cal Economics & Statistics, Vol. 8, No. S07, 2007, pp. 54-63.

[3]   A. Bucci and L. Guerrini, "Transitional Dy-namics in the Solow-Swan Growth Model with AK Technology and Logistic Population Change, B.E. Jour-nal of Macroeconomics, Vol. No. 9, 2009, pp. 1-16.

[4]   M. Ferrara and L. Guerrini, "The Ramsey model with logistic population growth and Benthamite felicity function revisited", WSEAS Transactions on Ma-thematics, Vol. 8, 2009, pp. 41-50.

[5]   M. Ferrara and L. Guerrini, "A Note on the Uzawa-Lucas Model with Unskilled Labor", Applied Science, Vol. 12, 2008, pp.90-95.

[6]   L. Xiang, "The Formation and Applica-tion of China Population Growth Estimation Model", Journal of Henan Institute of Science and Technology, Vol 36, No. 3, 2008.

[7]   L. Guerrini, "The Solow-Swan Model with a Bounded Population Growth Rate", Jour-nal of Mathematical Economics Vol. 42, 2006, pp. 14-21. doi:10.1016/j.jmateco.2005.05.001

[8]   L. Guerrini, A Closed-form Solution to the Ramsey Model with Logistic Population Growth, Economic Modeling, Vol. 27, 2010, pp.1178-1182. doi:10.1016/j.econmod.2010.03.002.

 
 
Top